Three-way talks on the future of Gibraltar began today with Spanish annoyance over Britain’s use of the tiny colony for repairing nuclear submarines high on the agenda.

Gibraltarians will tomorrow vote resoundingly against a British-Spanish proposal to share sovereignty over the colony, Chief Minister Peter Caruana said today.

Bank of Spain governor Jaime Caruana said euro zone inflation risks are on the downside.

Gibraltar's government is to hold a referendum on British proposals for shared sovereignty with Spain over the colony.